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Dana Company projects a sales revenue of $150,000 during the calendar year 2014. Using the income...

Dana Company projects a sales revenue of $150,000 during the calendar year 2014. Using the income statement provided below, prepare a pro-forma income statement using the percent-of-sales method.

Income Statement

Dana Dairy Products

For the Year Ended December 31, 2013

Sales Revenue 100,000
Less: Cost of Good Sold 87,000
Gross Profits 13,000
Less: Operating Expenses 11,000
Operating Profits 2,000
Less: Interest Expense 500
Net Profits before taxes 1500
Less: Taxes (40%) 600
Net Profits after taxes 900

Solutions

Expert Solution

The Pro-forma income statement is calculated by dividing the current year entries by the current year sales revenue and then multiplying the ratios by projected sales revenue

Pro- Forma income statement is given in the below image, please find it

jeff jeffy answered 2 months ago
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